Get Started To See Today’s Cash-Out Refinance Rates
Get the funds you need with a cash-out refinance. Apply to these lenders and see rates and how much you qualify for.
- How does cash-out refinance work?
With a cash-out refinance, you take out a new mortgage that's for more than you owe on your existing home loan, but less than your home's current value. You'll receive the difference between the new amount borrowed and the loan balance at closing.
- How do you get the best cash-out refinance rate?
Shop around with multiple lenders to compare cash-out refinance rates. You may also be able to buy points to bring down your refinance interest rate. While you're comparing lenders, be sure to also check the costs and fees associated with getting the refinance. These don't affect your rate, but fewer added fees will lower your closing costs.
- How much cash can I get with a cash-out refinance?
Lenders will limit the cash you take out to 80% to 90% of your home equity. An appraisal will be required to nail down your home’s current market value.
- Alternatives to a cash-out refinance
HELOCs and home equity loans are similar in that you’re borrowing against your home equity. But a loan typically gives you a sum of money all at once, while a HELOC is similar to a credit card: You have a certain amount of money available to borrow and pay back, but you can take what you need as you need it. You’ll pay interest only on the amount you draw.
HELOCs often begin with a lower interest rate than home equity loans but the rate is adjustable, or variable, which means it rises or falls according to the movements of a benchmark. That means your monthly payment can rise or fall, too. Many lenders will let you carve out a portion of what you owe on your HELOC and convert it to a fixed rate. You’ll still have the balance of your line of credit to draw from at a variable rate.
If you need to borrow more money than you'd qualify for with a HELOC or home equity loan, a cash-out refinance may be the right choice for you. This replaces your original mortgage with a larger one, and you receive the difference between the value of the loan and the amount you currently owe in cash.
With a cash-out refinance, you're getting a new home loan for more than you currently owe on your house. The difference between that new mortgage amount and the balance on your previous mortgage goes to you at closing in cash, which you can spend on home improvements, debt consolidation or other financial needs. However, you'll now be repaying a larger loan with different terms, so it's important to weigh the pros and cons before committing to a cash-out refi.
See below for our pick for a HELOC lender.
